You are here

Company purchasing practices

Suppliers have a key role and responsibility for providing good working conditions for the people they employ. But their efforts can sometimes be undermined by the buying practices of their customers - often the same retailers who are pushing them to comply with their codes of labour practice.

Practices such as last-minute changes to orders and ever-shorter lead times can contribute to excessive overtime, increased use of casual labour, and even unauthorised sub-contracting. And pressure from retailers to reduce prices can make it difficult for suppliers to pay workers a living wage.

Many retailers are already starting to identify ways in which they can develop new buying practices that support – rather than undermine – suppliers' ability to provide decent pay and conditions for their workers. For example, many have embarked on ambitious training programmes to increase the awareness of buyers and commercial staff of the impacts of their decisions on workers.

Other really positive steps forward include creating 'ethical champions' in retailer commercial teams, who act as the 'go to' person in their team for ethical trade. Some companies are starting to reward their buying staff for taking labour standards into consideration when they place orders with their suppliers.

The role of ETI

We challenge and support companies to put ethical trade at the heart of their business practices. Working with our membership – an alliance of companies, trade unions and NGOs – we are a powerful voice in the global marketplace.